With more than 55% of Nigerian Email Database starting their search directly on Amazon, brands have every interest in being present on the Marketplace. But being there is not enough to generate sales. Thanks to sponsored campaigns, gain visibility and appear at the top of Amazon’s results. Now, advertising on Amazon takes more and more space on the results pages but it has also become more competitive with CPCs increasing in all categories. It’s time for you to perfect your Amazon strategy through Sponsored Campaigns, because things are changing so much! Sponsored Products Campaigns: Powerful but Complex Sponsored Products formats are either automatic
ads (depending on content) or manual ads (depending on keyword) that will only appear when you are the big winner in the Amazon Buybox . These ads appear within mobile and desktop results pages and are virtually indistinguishable from natural results (except for the fact that they are often placed at the top of listings but also at the heart of results pages). Below is an example of sponsored ads on Amazon for search: “Sewing machine” In any case, Amazon will give even more space for Sponsored Products and as with Google Ads, the top SERP positions will become extremely competitive for generic search terms and even more so on mobile.
Sponsored Products Campaigns
“I want to increase my turnover quickly and at the same time increase my ROI”. However, keep in mind that volume and profitability can be opposing goals and that by working on one goal it can degrade the other. This can be tricky to understand, and that’s why we’ve defined the three different possible goal types for Sponsored Campaigns on Amazon. Here are the three objectives available to you: The levers that we activate to meet this objective are the increase in bids and the selection of strategic keywords with high search volume. In fact, we maximize bids on as many keywords as possible that generate sales in order to increase your turnover.
But keep in mind that your profitability can be degraded; More traffic can bring more orders but not with the same KPI’s, which leads to higher cost per sale and lower profitability. In addition, there is no guarantee that a keyword will convert or that a keyword that converts today, will convert tomorrow, the competition is constantly changing and search terms evolve as well. These are the reasons why you may need an Amazon agency to track your ad performance on a daily basis and make any necessary adjustments. This second option is to increase your profitability by stopping unprofitable investments and this involves lowering bids on certain keywords as well as pausing less profitable and inefficient keywords.
Define your goal
By working on the profitability of your sponsored campaigns, there will be less volume because even an unprofitable keyword generates sales anyway. For example: if a customer is not profitable and wants to improve their ROI quickly, it will have to come at the expense of volume. And once we hit the target ROI, we can identify which keywords are the most profitable and again increase the bids on the best keywords to see if we can gain volume while still being profitable. Choice n ° 3 (and the best!): I want to increase my turnover and my profitability over time
The third option is to increase both your sales volume and your profitability over time, but like any sponsored campaign, it takes time. It is also important to keep in mind that increasing volumes implies increased traffic which also requires an increase in the advertising budget. Throughout the optimization of your campaigns, we will achieve both volume growth and profitability by identifying the optimal bids for each keyword. But it takes time because it is impossible to predict the most optimal bid for a keyword and we have to revise the bids up or down by testing the performance of the keyword. And this optimal point is constantly fluctuating depending on the bids of other market players